In an audit of financial statements, substantive tests are audit procedures that __________?
AMay be eliminated for an account balance under certain conditions
BAre designed to discover significant subsequent events
CMay be test of transactions, test of balance and analytical procedures
DWill increase proportionately when the auditor decreases the assessed level of control risk
Correct answer
C. May be test of transactions, test of balance and analytical procedures
Explanation
May be test of transactions, test of balance and analytical procedures is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.